East China

Shanghai to Offer Incentives to Shipping-Related Industries

Nov. 7 – As a city striving to become an international shipping center, Shanghai is brewing a complete package of favorable policies for its shipping-related industries. The new policies are hoped to significantly bring down shipping companies’ tax liabilities to levels similar to the shipping tax burdens seen in Hong Kong, experts say.

According to a report by the Shanghai-based newspaper Dongfang Daily, the government of Shanghai’s Pudong New Area – the city’s trading and financial center with high reliance on international shipping – will announce a series of supportive measures to motivate the development of shipping-related industries. The favorable policy package, which includes one-time subsidies, tax subsidies and soft environment improvement, will be offered to both key shipping companies (such as ship operators, shipping companies and logistics companies) and high-end shipping-related service companies (such as finance leasing companies, shipping insurance institutions, shipping information consulting institutions, shipping brokers, shipping-related legal service institutions and maritime training institutions). Continue reading →

Posted in Business, East China, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update, Shipping & Logistics | Tagged China Logistics, China Shipping, China Tax, Shanghai International Shipping Center, Shanghai Pudong New Area, Shanghai Shipping One-time Subsidy, Shanghai Shipping Reward, Shanghai Shipping Subsidies, Shanghai Shipping Tax Incentives, Shipping Service Companies | Leave a comment

China to Allow Issuance of Local Gov’t Bonds

China debt institutionalizing as bank default fears loom

Oct. 21 – China’s Ministry of Finance has instigated a trial program that will allow four select local governments to issue bonds directly. To date, this route to raising funds has been banned, however rising debt levels and bank loans about to fall due have made the issue a pressing one for Beijing. Concern over local governments defaulting on debt has prompted the trial. China’s National Audit Office has stated that 25 percent of China’s RMB10.7 trillion (US$1.67 trillion) will fall due by this year end, with about 17 percent due next year and 11 percent in 2013. Continue reading →

Posted in East China, Economy and Politics, Finance, Tax and Accounting, South China | Tagged China Debt, China Default, China Local Governments, Guangdong, Shanghai, Shenzhen, Zhejiang | Leave a comment

China Bails Out Its Banks

Oct. 12 – Beijing has used the state-owned Huijin Sovereign Wealth Fund to purchase stocks in China’s four largest banks – Agricultural Bank of China, Bank of China, Industrial & Commercial Bank of China, and China Construction Bank – in moves made to support the share prices of each of the banks, as well as the markets overall. Huijin is now in the somewhat odd position of owning a controlling stake in each of China’s biggest banks.

Huijin has stepped in to support share prices as markets in Shanghai and Shenzhen have declined significantly over the year, while the banks themselves have been dealing with bad debt issues following Beijing’s policy of providing easy credit terms to support the economy during the Global Financial Crisis in 2008. Continue reading →

Posted in East China, Economy and Politics, Finance, Tax and Accounting, Markets, South China | Tagged Agricultural Bank of China, Bank of China, China Construction Bank, China Finance, Global Financial Crisis, Hong Kong Stock Exchange, Huijin Sovereign Wealth Fund, Industrial & Commercial Bank of China, Shanghai Stock Exchange, Shenzhen Stock Exchange | 2 Comments

Free China Expat Culture Book Download

Sept. 30 – China Expat, China Briefing’s sister site covering all things concerning the interaction between overseas expatriates and Chinese culture, celebrates 10 years of existence this year and has released a complimentary book – “China Expat – A Decade of Writing: 2001-2011” – with a selection of articles contributed to the title over the past decade. The book is launched today both as a anniversary gift to China expats home and abroad, and also to celebrate China’s National Day, which falls on October 1.

“China Expat – A Decade of Writing: 2001-2011” brings together a collection of the published work of four well known expats for the first time in one volume. With articles taken from the archives of the original China Expat magazine, and more recently the online blog from the past 10 years, this collection will provide memories of days gone by, provoke exclamations of “I didn’t know that!” and inspire today’s generation of expats to get out, about and explore. In an age when blogs are mainly blah, the China Expat articles within will provoke, provide food for thought, and raise a wry smile.
Continue reading →

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China Total Tax Burden Second Highest in World

Chinese capitalism seems long gone when viewed against actual fiscal policies

Sept. 26 – China’s tax burden is the second highest globally, beaten only by France, the 2009 Tax Misery Report by Forbes has suggested. Although relatively old data, the report has not previously gained much attention. However, as China has since then raised minimum wages and introduced social welfare payments for foreigners, the total tax and contributing burden by companies in China may now have overtaken European nations. It is possible that China has now become the most tax burdensome nation in the world. Continue reading →

Posted in Business, East China, FDI and Foreign Trade, Finance, Tax and Accounting | Tagged Belgium, China Tax, CIT, Corruption, Forbes, France, IIT, Profit Repatriation, Social Insurance, Tax Deductions, VAT, Zhejiang Province | 6 Comments

China Briefing Releases New Business Guide for Shanghai and the Yangtze River Delta

Sept. 20 – China Briefing has just released the fourth edition of its regional business guide “The Yangtze River Delta: Business Guide to the Shanghai Region” – offering business-minded individuals an up-to-date reference source for all of the key issues concerning setting up and successfully operating a business in East China.

With its proximity to suppliers, easy access to ports and well-developed infrastructure, the Yangtze River Delta region continues to draw large quantities of foreign investment.

Cities in the Yangtze River Delta dominated the Forbes Magazine “Best Cities for Business in Mainland China” list in 2010, filling six of the top ten slots. This guide walks you through the major players in the region. Continue reading →

Posted in Business, East China, FDI and Foreign Trade, Finance, Tax and Accounting | Tagged Anhui Province, China Briefing Regional Guide, Doing Business in China, Doing Business in East China, Jiangsu Province, PDF Download, Shanghai, Yangtze River Delta, Zhejiang Province | Leave a comment

Shanghai Establishes SME Funds

Sept. 8 – The Shanghai Municipal Government, concerned by slow growth rates and rising cases of bankruptcies, has become the first regional government to establish funds to assist local businesses. Three funds have been set up, each of RMB1 billion (US$156.68 million) to assist small-medium local businesses obtain financing.

Many local businesses have been hit by rising costs and monetary tightening at bank levels. The first fund will be used to invest in loan guarantee companies in order to boost their capital base and permit them to widen funding for small businesses. The second will be used to cover any losses incurred by banks if loans made by them to SMEs turn bad, while the third fund will provide seed capital and invest in startups. Continue reading →

Posted in Business, East China, Economy and Politics, FDI and Foreign Trade | Leave a comment

Fujian’s Entertainment Industry to Enjoy Lower Business Tax Rates

Aug. 1 – A majority of Fujian Province’s entertainment enterprises will be paying a lower amount of business tax starting from this month, thanks to a newly released provincial document that made adjustments to business tax rates for the region’s entertainment industry.

The General Office of the Fujian Provincial People’s Government issued the “Circular on the Adjustments to Business Tax Rates for Entertainment Industry (Minzhengban [2011] No.57)” on July 5. According to Circular No.57, starting from August 1, 2011, business tax rates will stand at 20 percent for cyber cafes and video game arcades, 10 percent for golf businesses and 5 percent for the rest of entertainment businesses. Continue reading →